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Edited version of private advice
Authorisation Number: 1051530234300
Date of advice: 21 June 2019
Ruling
Subject: Capital gains tax
Question
Did you obtain an ownership interest in the property when you first obtained the use and enjoyment of the property under an agreement with the owner in which the title would transfer to you upon the owner's death?
Answer
Yes.
A CGT event B1 happened when you obtained your ownership interest in the property which was when you first obtained the use and enjoyment of the property under the agreement with the owner in which the title would transfer to you upon their death.
This ruling applies for the following period
Year ended 30 June 2018
Year ended 30 June 2019
The scheme commences on
1 July 2017
Relevant facts and circumstances
The deceased purchased a property for you and another person live in as your home. The owner granted each of you the use and enjoyment of the property at different times. The owner's intention was that ownership would pass to both of you in equal shares upon the owner's death. The owner's Will was amended to reflect this agreement.
You both lived in the property at different times and both contributed to the ownership costs of the property, including repairs and renovations.
The owner died. According to the owner's Will and in accordance with the agreement with the owner, title to the property was transferred to you and another person.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 109-5(2)